European bank launches support for quake-hit SMEs in Türkiye

By Tuba Ongun

The European Bank for Reconstruction and Development (EBRD) on Tuesday announced the launch of a program to support small and medium-sized enterprises (SMEs) hit by the twin earthquakes that struck southern Türkiye on Feb. 6.

With an aim of assisting businesses reconstruct damaged buildings, production assets and infrastructure, the program will provide each business with a grant that covers 85% of the reconstruction and repair costs, for a maximum of €60,000 ($64,275), the bank said in a statement.

More than 50,000 people were killed by earthquakes with magnitudes 7.7 and 7.6 that rocked 11 Turkish provinces, which are home to about 14 million people.

The program is getting financial support from the Japan's Finance Ministry and will be implemented in the quake-hit provinces of Adana, Adiyaman, Diyarbakir, Elazig, Hatay, Gaziantep, Kahramanmaras, Kilis, Malatya, Osmaniye, and Sanliurfa.

The Reconstruction Assistance and Grant program follows the EBRD's €1.5 billion investment plan for the region over the next two years, which was set up to reduce the economic impact of the disaster, and includes the €600 million Disaster Response Framework.

Arvid Tuerkner, the EBRD’s managing director for Türkiye, said: "Through the reconstruction grants, our new SME programme will not only help small businesses resume their operations, but through integrated advisory support will also foster a more sustainable reconstruction and robust recovery."

The EBRD is the leading institutional investor in Türkiye, having invested more than €18 billion in the country since 2009, mainly in the private sector.